--- title: "Take profit/stop loss" description: "What are Take-Profit and Stop-Loss?The take-profit/stop-loss feature lets you set price levels to automatically buy or sell stocks when they reach those prices, helping you manage risks and lock in profits.Take-profit order: Closes your position when the price reaches a certain profit level, locking in your gains.Stop-loss order:Closes your position if the price drops to a certain level, limiting your losses." slug: "di4ydy" locale: "en" region: "hk" region_label: "Hong Kong" url: "https://longbridge.com/hk/en/support/topics/misc/di4ydy.md" updated_at: "2024-10-25T02:53:32.000Z" category: "misc" category_title: "Other" --- # Take profit/stop loss [Table of Contents](https://longbridge.com/hk/en/support/toc.md) ## What are Take-Profit and Stop-Loss? The take-profit/stop-loss feature lets you set price levels to automatically buy or sell stocks when they reach those prices, helping you manage risks and lock in profits. - Take-profit order: Closes your position when the price reaches a certain profit level, locking in your gains. - Stop-loss order**:** Closes your position if the price drops to a certain level, limiting your losses. ## When to Use It and How to Access It - **After placing an order:** Once your order is done, you can set take-profit and stop-loss levels using the order panel. ![](https://assets.lbctrl.com/uploads/1_11834_lzwhz1skgt92zt3jn9l_.jpeg) - **Managing current positions:** Alternatively, you can set take-profit and stop-loss levels for your current positions using the "Profit/Loss" button, as shown. ![](https://pub.pbkrs.com/uploads/2024/6525bf64e6eeda2f0121f54765f7a7c1) ## How to Use the Feature ![](https://pub.pbkrs.com/uploads/2024/65068e7024e8fe95f10436e21cffd8ba) 1. Set TP (take-profit) and SL (stop-loss) prices and the system will display your estimated profit or loss and the percentage change.  Using the image above as an example: At TP price: 229.89; Estimated profit percentage: +10.00% Estimated profits\*: +208.97USD At SL price: 188.09 Estimated profit percentage: \-10.00% Estimated profits\*: \-209.03USD \*Estimated profits = (TP price - Cost price) \* Qty Estimated losses = (SL price - Cost price) \* Qty TP and SL toggle switch: Enable both toggles to set both TP and SL prices. Note: If a TP order is triggered by the system, your SL order will automatically be cancelled, and vice versa. TP only or SP only: Set either a TP or an SL order For a detailed explanation, see: “Examples” 2\. Order parameter settings: Select “Limit” or “Market” to set order type Limit Orders require input for TP and SL prices Time in Force: Sets how long your TP and SL orders remain active. Options: Good Till Cancelled, Day, or a custom period Session Selecting a trading session is required for US stocks Note: Market Orders are only available during regular trading hours. 3\. Price Settings TP/SL price: Adjust the target price based on the percentage change from the cost price. Qty: Set the number of shares based on your current position. TP/SL (Order Price): Adjust the target prices based on your TP/SL prices. ![](https://pub.pbkrs.com/uploads/2024/bd11e3762a24bba4280351ac812e7a34) ## Parameter Descriptions - **TP:** If the market reaches or exceeds the set price, your position will be closed automatically - TP Only: Focus on locking in profits by setting just the TP price. - **SL**: If the market falls to or below the set price, the system will automatically close your position. - SL Only: Focus on minimizing losses by setting just the SL price. > Note: If a TP order is triggered by the system, your SL order will automatically be cancelled, and vice versa. Examples: 1. Investor A has 500 shares of Stock XYZ purchased at a cost price of $10.00 per share. Investor A sets the ‘TP Price’ at **$11.00**, and the ‘SL Price’ at **$9.50** for **100** shares by placing a **Market Order** in the “TP/SL” feature. 1. Once the order is submitted, the system creates two conditional orders: (1) an SL order to sell 100 shares if price falls to $9.50 or lower; and (2) a TP order to sell 100 shares if the price rises to $11.00 or higher. If the price reaches $11.00, the TP order will be triggered and the SL order will therefore be automatically cancelled. 2. Investor B **opens a short position to** **sell** 100 shares of Stock XYZ at a cost price of $10.00 per share. Investor B then places a Limit Order, setting the ‘TP Price’ at **$9.00** and the ‘SL Price’ at **$11.00** for **100** shares. The ‘TP (Order Price)’ is set to $8.90 while the ‘SL (Order Price)’ is $11.00. 1. Once the order is submitted, the system creates two conditional orders: (1) a TP order to buy 100 shares at $8.90 if the price drops to $9.00 or lower; and (2) an SL order to buy 100 shares at $11.00 if the price rises to $11.00 or above. If the price reaches $11.00, the SL order will be triggered and the TP order will therefore be automatically cancelled. ## Managing Your Take-Profit and Stop-Loss Orders - After your orders are placed, view and manage them in the ‘Orders’ tab. - Long position - two sell orders. - Short Position - two "Buy" orders. ![](https://pub.pbkrs.com/uploads/2024/65430f348e6b4ee429f64de86b047f37) ## Important Things to Note - Take-profit/stop-loss prices: The system defaults to setting prices at +/- 10% of your cost price. However, this does not apply if your cost price is $0 or lower. - Limit Orders: Set take-profit/stop-loss prices according to the stock’s liquidity, as limit orders might not always be filled - Quantity: Take-profit and stop-loss orders are conditional and do not affect your available shares. However, if you manually close a position, the orders might fail due to insufficient shares. - Check your order's "Time in Force" and "Trade Sessions" settings to ensure they align with your trading plan. Note that Market Orders are not supported during pre- and post-market sessions for US stocks. ## FAQs **Q: How can I amend an existing take-profit/stop-loss order?** A: Tap "Amend" on your order in the 'Orders' tab to adjust the order settings accordingly. **Q: Why was my take-profit/stop-loss order triggered even though the set price wasn't reached?** A: The price shown on the candlestick chart is a weighted average, while the system triggers your conditional order based on real-time transaction prices. --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice. Content provided by [Longbridge](https://longbridge.com).